The UK government published its Steel Strategy on March 19, 2026, outlining plans to revitalise domestic steel production and prioritise recycled scrap in the industry’s transition. The strategy aims to stabilise the sector, attract investment and shift production toward cleaner technologies, with a goal of raising domestic output from around 30% of demand to 40–50% while advancing green steel.

A central measure is the transition from blast furnaces to Electric Arc Furnaces, which rely mainly on recycled scrap and reduce carbon emissions. The government highlighted the UK’s abundant scrap supply as a competitive advantage and noted growing demand from construction, infrastructure, and clean energy sectors.

The plan includes up to £2.5 billion in support, lower electricity costs, trade protections, and procurement reforms. A Scrap Working Group will be established by May 2026 to ensure a stable supply and support innovation. New trade measures, including tariffs of up to 50% on excess imports, will take effect from July 2026 to protect domestic producers.